NEXON Co., Ltd. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: ¥124.1 billion, up 36% year-over-year (YoY) as reported and 28% YoY on a constant currency basis — a record high for Nexon.
  • Operating Income: ¥56.3 billion, up 46% YoY, exceeding outlook due to lower-than-expected HR and marketing expenses.
  • Net Income: ¥52.8 billion, increased 31% YoY, aided by a ¥5.6B foreign exchange gain.

Performance Drivers

  • Top Performers: FIFA ONLINE 4 and MOBILE (Korea), Dungeon&Fighter (China), and Blue Archive (Global) — all exceeded expectations.
  • Underperformers: MapleStory (Korea), Dungeon&Fighter Mobile, HIT2 and KartRider: Drift.

Platform and Regional Breakdown

  • Platform: PC revenue met expectations; mobile revenue slightly exceeded expectations.
  • Regions: China and Japan surpassed expectations; Korea, NA/EU, and Rest of World were within guidance.

Q2 2023 Outlook

  • Revenue: Estimated at ¥88.4B to ¥96.7B, a YoY increase of 5–15% (7–17% on constant currency).
  • Operating Income: ¥22.1B to ¥28.7B, representing -3% to +26% YoY (-1% to +30% constant currency).

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Operator: Good day, everyone, and welcome to Nexon’s 2023 First Quarter Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the call over to Takanori Kawai, Team Leader of Investor Relations. Please go ahead, sir. Takanori Kawai: Hello, everyone, and welcome to Nexon’s earnings conference call. Thank you for joining us today. With me are Owen Mahoney, President and CEO of Nexon; and Shiro Uemura, CFO. Today’s call will contain forward-looking statements, including statements about our results of operations and financial condition such as revenues attributable to our key titles, growth prospects, including with respect to the online games industry, our ability to compete effectively, adapt to new technologies and address new technical challenges, our use of intellectual property and other statements that are not historical facts. These statements represent our predictions, projections and expectations about future events, which we believe are reasonable or based on reasonable assumptions. However, numerous risks and uncertainties could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Information on some of these risks and uncertainties can be found in our earnings-related IR documents. We assume no obligation to update or alter any forward-looking statements. Please note, net income refers to net income attributable to owners of the parent as stated in Nexon’s consolidated fina

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